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Stronghold Insurance Company, Inc. vs. Republic-Asahi Glass Corporation

STRONGHOLD INSURANCE COMPANY, INC., Petitioner, versus REPUBLIC-ASAHI GLASS CORPORATION, Respondent.

G.R. No. 147561 | 2006-06-22

DECISION 
 
PANGANIBAN, CJ: 
 
A surety company's liability under the performance bond it issues is solidary. The death of the principal obligor does not, as a rule, extinguish the obligation and the solidary nature of that liability. 
 
The Case 
 
Before us is a Petition for Review[1] under Rule 45 of the Rules of Court, seeking to reverse the March 13, 2001 Decision[2] of the Court of Appeals (CA) in CA-GR CV No. 41630. The assailed Decision disposed as follows: 
 
"WHEREFORE, the Order dated January 28, 1993 issued by the lower court is REVERSED and SET ASIDE. Let the records of the...